BIR VAT and Taxpayer Registration Procedures

Coverage and required registrations

The order requires registration for VAT, Non-VAT, withholding agents, excise taxpayers, place/premises where inventory is kept, and branches, with registration responsibilities keyed to the type of activity.
VAT registration (mandatory) applies to every person who sells, barters, exchanges, leases goods or properties, or renders services subject to VAT, if aggregate actual or expected gross sales and/or gross receipts exceeds PHP 500,000.00 for any 12-month period (III.A.1.1).
VAT registration (optional) applies to persons qualifying under enumerated categories, and once opted, the registrant becomes liable for VAT but is entitled to tax credit and/or refund (III.A.1.2).
Non-VAT registration is required for VAT-exempt persons under Section 103 of the NIRC who do not opt for VAT registration, persons subject to percentage taxes under Section 112 of the NIRC, persons engaged in trade or business or profession other than VAT/percentage taxes under Title V of the Tax Code, and non-stock, non-profit organizations and associations not engaged in trade or business (III.A.2).
Withholding agent registration is required for enumerated payors, including employers meeting specified compensation thresholds, non-employers making expanded withholding tax and final tax income payments, government offices (including GOCCs) and barangay governments, and branches that have disposal and custody of payments subject to withholding tax (III.A.3).
Excise tax registration is required for specified persons engaged in manufacturing/production/importation/exportation of articles subject to excise tax, including manufacturers of tobacco products, importers of tobacco products, alcohol product producers/importers/distributors, cinematographic film producers/importers, automobile manufacturers/assemblers, mineral and quarry resource producers, non-essential goods producers/sellers, and petroleum product manufacturers/producers (III.A.4).
Inventory place/premises registration is required for any taxpayer selling goods in the course of trade or business to register the place/premises where inventory of goods for sale or for use in business is kept (III.A.5).
Branch office registration is required for every branch of a taxpayer whether or not filing of return is required or payment of tax is due (III.A.6).

Who files, where filed, and timing

The Application for Registration must be filed before commencement of business or production or before qualification as a withholding agent; for storage places/premises, it must be filed within thirty (30) days from the date the premises are used for storage (III.B).
VAT registration applications are filed with the RDO having jurisdiction over the principal place of business (III.B.1).
Non-VAT registration applications are filed with the RDO having jurisdiction over the principal place of business or the branch, at the option of the taxpayer (III.B.2).
Withholding agent applications are filed with the RDO having jurisdiction over the principal place of business and/or the branch having custody and disposal of payments subject to withholding tax (III.B.3).
Excise tax registration requires registration of each and every place of production before actual operation with the RDO where the place of production is located (III.B.4).
Branches with no filing of return or no tax due must register with the RDO where the branch office is located (III.B.5).
Storage place/premises where inventory is kept are filed with the RDO having jurisdiction over the location of the storage place/premises (III.B.6).

Registration rules and fees

A taxpayer must file only one Application for Registration (BIR Form No. 1556-A) covering VAT, Non-VAT, Excise Taxpayer, and Withholding Agent status, and this filing constitutes compliance with business name registration, which is automatically included (II.A.1).
VAT, Non-VAT, excise, and required storage place applicants must file with the Revenue District Office (RDO) with jurisdiction over the principal place of business, branch, place of production, or storage, as applicable (II.A.2).
A VAT person with a head/main office and branches in different places must register VAT activity with the RDO where the main/head office is located, but the Certificate of Registration is issued by the RDO where branches are located (II.A.3).
Each branch must accomplish separate Applications for Registration even if within the same RDO, and a separate Certificate of Registration must be issued for each branch (II.A.4).
The annual registration fee is PHP 1,000.00 for every separate or distinct establishment or place of business using Annual Registration Fee Return; a taxpayer engaged in both VAT and Non-VAT pays PHP 1,000.00 for each activity (II.A.5).
Non-stock, non-profit organizations and associations under Section 26 of the NIRC, not engaged in trade or business, must register but remain exempt from annual registration fee, except that the exemption does not apply if the taxpayer/registrant is engaged in taxable activities (II.A.6).
Major changes in registration status or organizational form must be processed by accomplishing the Application for Cancellation of Registration and paying the registration fee, if applicable; minor changes (such as change of address within the same RDO and typographical errors) must be processed through a Registration Change Form (Annex E) (II.A.7).
The Certificate of Registration is issued only after an ocular inspection by a Revenue Officer, and duly approved by the Revenue District Officer concerned, in addition to other registration requirements (II.A.8).
Warehouses/storage places where business transactions are conducted are considered branches for registration and the annual registration fee; if no business transactions are conducted, registration is still required but the annual registration fee is not required (II.A.9).
Warehouses/storage places within the premises of the home office or branch are not required to register (II.A.9).
Taxpayers required under Revenue Regulations 5-94 to register their storage place/premises where inventory is kept must likewise register their books of inventory upon approval and release of the Certificate of Registration (II.A.10).
Taxpayers registering at any time of the year must pay the full annual registration fee of PHP 1,000.00 (II.A.11).
All applications for registration are assigned for ocular inspection within twenty-four (24) hours from receipt, and the ocular inspection report is submitted within three (3) days from assignment (II.A.12).
The RDO must maintain separate logbooks for all applications received and all approved applications (Annex F and Annex G) (II.A.13).

Cancellation of registration procedures

Cancellation of registration is effected only after compliance with all cancellation procedures prescribed in the order (IV.B.1).
The RDO maintains separate logbooks for all Applications for Cancellation of Registration (Annex H and Annex I) (IV.B.2).
Applications for cancellation due to closure/cessation or termination of business are subjected to immediate investigation by the concerned RDO to determine the taxpayer’s tax liabilities (IV.B.3).

RDO workflow for registration approvals

RDO applications for registration are received by the Registration and Regulatory Unit (RRU) of the RDO in triplicate and distributed as: Original—ISOS, Duplicate—RDO file copy, Triplicate—Taxpayer (IV.A.1).
The RRU receives three (3) copies of a duly accomplished Application for Registration (BIR Form 1556-A) and requires the enumerated general requirements, plus applicable excise and storage-place inventory requirements (IV.A.1.1).
The RRU checks for completeness and accuracy of information and documents and verifies details from original documents, exercising extra care to ensure the correct TIN and NEDA industry/profession code are reflected (IV.A.1.2).
The RRU stamps “RECEIVED” and indicates the date of receipt on the lower right hand corner of BIR Form 1556-A, records the application in the appropriate logbook (Annex F), and instructs the taxpayer to return after five (5) working days to check approval status (IV.A.1.3–1.5).
The RRU forwards the application to a Revenue Officer who must (1) evaluate qualification under revenue rules and regulations, (2) conduct ocular inspection of premises/production/storage, and (3) recommend approval or disapproval to the Revenue District Officer within three (3) working days from filing, provided the application requirements in IV.A.1.a are complied with (IV.A.1.6).
For approved applications, the RDO requires payment of the annual registration fee using BIR Form 1558, determines timeliness of the application, issues an Authority to Accept Payment (ATAP) for penalties for those who failed to register on time, and requires presentation of machine-validated Annual Registration Fee Return (BIR Form 1558) and ATAP where applicable (IV.A.1.7.1–1.7.4).
Upon approval, the RDO marks the application “APPROVED,” signs and dates it, assigns an RDO Control Number in sequential format, records the approval in the logbooks, prepares and releases the Certificate of Registration (BIR Form 1556) (Original to taxpayer; Duplicate to RDO file), and releases the original copy of the certificate after five (5) working days from filing (IV.A.1.7.5–1.7.9).
The RDO requires the taxpayer to display the original copies of the Certificate of Registration (BIR Form No. 1556) and the Annual Registration Fee Return (BIR Form No. 1558) conspicuously at principal office/branch/production/storage, as applicable, and requires registration of books of accounts including books of inventory for storage places, if applicable (IV.A.1.7.10–1.7.11).
The RDO files the duplicate copies of BIR Form No. 1556-A and 1556 and forwards all originals of approved BIR Form No. 1556-A, including Registration Change Form (Annex E) and transmittal letters (Annexes J and M) to ISOS within twenty five (25) days after the end of the month when the application was filed (IV.A.1.7.12–1.7.13).
For disapproved applications, the RRU checks “DISAPPROVED,” signs and dates processing completion, and informs the taxpayer of disapproval (IV.A.1.8).

ISOS and monitoring functions after registration

ISOS receives the approved originals of registration applications and the covering transmittal letter from the RDO, transcribes required data into the master file, and generates semi-annual computer printouts by RDO by type of registration applied for in three (3) copies within ten (10) days after the end of each semester forwarded to specified services (IV.A.2.1–2.3).
The Performance Monitoring Service (PMS) / Collection Service (CS) receives the printouts and BIR Form 1556-A originals, transmits computer printouts to the Monitoring Division specified for each category, and maintains a logbook/ledger card for monitoring purposes (IV.A.3.1–3.3).
The order assigns monitoring transmission by category as: VAT/Non-VAT/Excise—ROMD, Storage Places—ROMD, Branches—ROMD, Withholding Agents—WAMD (IV.A.3.2).

RDO workflow for cancellation

Cancellation applications are filed with the RRU of the RDO where the Certificate of Registration (BIR Form 1556) was issued, in triplicate, distributed as: Original—ISOS, Duplicate—RDO file copy, Triplicate—Taxpayer (IV.B.1).
The taxpayer submits a triplicate Application for Cancellation of Registration (BIR Form 1557) with: photocopy of BIR Form 1556, and applicable documents such as retirement/assignment, death certificate, SEC resolution for dissolution, and transfer notice (IV.B.1.1).
The RDO issues the triplicate copy to the taxpayer and instructs the taxpayer to return after five (5) working days (IV.B.1.2).
The RDO assigns a Revenue Officer to conduct ocular inspection/verification within twenty-four (24) hours from receipt; for closure/cessation/termination, the taxpayer requesting cancellation is subjected to immediate investigation, and for transfer of place of business, ocular inspection verifies compliance with revenue rules and regulations (IV.B.1.3–1.3.2).
For a retiring manufacturer of excisable goods, the investigating officer must cause dismantling and crating of machineries/mechanical contrivances used in manufacture before cancellation issuance (IV.B.1.3.3).
If the RDO initiates cancellation based on the “stop-filer/non-filer” list generated under RMO 16-92, a Revenue Officer is assigned to conduct an ocular inspection and recommend cancellation by accomplishing BIR Form No. 1557 (IV.B.1.3.4).
The Revenue Officer prepares/submits an inspection report within three (3) working days after conducting ocular inspection; where cancellation is due to closure, regular investigation of internal revenue tax liabilities applies (IV.B.1.4).
If cancellation warrants cancellation, the registrant must surrender the original BIR Form 1556 for cancellation; if cancellation is due to closure/cessation/termination, the registrant must submit all unused official receipts, invoices, and books of accounts for cancellation (IV.B.1.5).
The RDO stamps “CANCELLED” on the original certificate and returns it to the taxpayer, records cancellation in the appropriate logbook, and prepares a monthly transmittal list of cancelled registration in quadruplicate within twenty five (25) days after the end of the month following cancellation (IV.B.1.6–1.8).

ISOS and monitoring functions after cancellation

ISOS receives the monthly transmittal list with approved applications, delists the registrant from the computer master file, and generates a semi-annual computer printout of all cancelled registrations by RDO by type of registration applied for in three (3) copies within ten (10) days after the end of each semester forwarded to specified services (IV.B.2.1–2.3).
PMS/CS receives computer listings of cancelled registration with original copies of BIR Form 1557, transmits listings to the appropriate Monitoring Division, and maintains monitoring logbooks/ledger cards (IV.B.3.1–3.3).
Monitoring transmission after cancellation is categorized as: VAT/Non-VAT Excise—ROMD, Storage Places/Branches—ROMD, Withholding Agents—WAMD (IV.B.3.2).

Transitory re-registration and grace period

All taxpayers already registered as VAT, Non-VAT, excise establishments and their places of production, withholding agents, storage places, branches (whether or not filing of return is required or payment of tax is due), and non-stock, non-profit organizations and associations not engaged in trade or business must re-register starting May 30, 1994 until June 30, 1994 (IV.Transitory Provisions).
A sixty-day (60) grace period is allowed during which re-registration is done without imposition of penalties (IV.Transitory Provisions).
Existing taxpayers must submit an accomplished Application for Registration (BIR Form 1556-A) in triplicate with a copy of the old certificate or evidence of previous registration, and must pay the required registration fee directly to any accredited bank within the revenue district using Annual Registration Fee Return (BIR Form 1558) (IV.A and IV.B).
Existing taxpayers must present a copy of duly validated BIR Form 1558 evidencing payment and receive the new Certificate of Registration from the RDO (IV.C–IV.D).
Taxpayers changing status from VAT to Non-VAT or vice versa must submit inventory list of unused sales invoices and official receipts as of May 27, 1994, and unused invoices/receipts for stamping with “VAT INVOICE/RECEIPT” or “NON-VAT INVOICE/RECEIPT” at the upper right portion, not later than June 30, 1994 (IV.E).
For purposes of re-registration of existing taxpayers, documentary requirements (other than the submission in No. 1 of the Transitory Provision) and ocular inspection are dispensed with (IV.Transitory Provisions).
For taxpayers registering for the first time from May 30 up to June 30, 1994 and within the 60-day grace period, ocular inspection is conducted after issuance of the Certificate of Registration (IV.Transitory Provisions).

Repeal clause

All existing issuances inconsistent with BIR Revenue Memorandum Order No. 41-94 are repealed (V).